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Arkansas Development Finance Authority 2009 Special Multi-Family Housing Application for Additional Tax Credits, HOME Funds, TCAP and EXCHANGE Program Funds www.recovery.arkansas.gov http://www.recovery.gov/ Table of Contents Contents Page Instructions for Submitting Applications ...................................................................... i 2009 Selection Criteria and Guidance and Procedures for the Distribution of Additional Tax Credits; HOME Funds; TCAP Funding; and Exchange Funds ..... ii Application Checklist....................................................................................................x Applicant Self-Scoring Sheet ..................................................................................... xii 2009 SPECIAL APPLICATION TIER SELECTION ...........................................................................................................1 I. Development Name & Address.................................................................... 2 II. Applicant Information .................................................................................. 2 III. Partnership Information................................................................................ 3 IV. Special Housing Needs Set-Aside ................................................................ 3 V. Development Type ....................................................................................... 4 VI. Development Information .............................................................................4 VII. Site Information ............................................................................................5 VIII. Existing Subsidies with Acquisition Developments .....................................5 IX. Monthly Utility Allowance Calculations ......................................................6 X. Development Tax Credit Rents ....................................................................6 XI. Development Income ....................................................................................7 XII. Annual Expense Information ........................................................................9 XIII. Sources of Funds - Financing .....................................................................12 XIV. Development Costs .....................................................................................13 XV. Syndication Information .............................................................................15 XVI. Development Timeline ...............................................................................16 XVII. Signature Page (Additional Tax Credits/TCAP/EXCHANGE) .................18 XVIII. Certification (HOME Developments).........................................................20 REQUIRED FORMS ................................................................................................. 21 Pro Forma (Attachment C)..........................................................................................22 Building and Unit Designation (Attachment E) ..........................................................23 Conflict of Interest Acknowledgement (Attachment F-1) ..........................................24 Contract and Grant Disclosure and Certification Form (Attachment F-2) .................25 Multi-Family Housing Minimum Design Standards Checklist (Attachment G) ........27 Standard Form 424 (Attachment H) ...........................................................................32 Affirmative Fair Housing Marketing Plan (Attachment I) .........................................33 Request for Taxpayer ID Number & Certification (W-9) (Attachment K) ................34 HUD Certification for Contracts, Grants, and Loans (Attachment L) ........................35 HOME Program Match Requirements (Attachment M) .............................................36 HOME Unite Breakdown (Attachment P) ..................................................................37 INSTRUCTIONS For 2009 Special Multi-Family Housing Application For Additional Tax Credits, HOME Funds, TCAP and Exchange Program Funds 1. SUBMIT ONE (1) SIGNED ORIGINAL AND ALL ATTACHMENTS. • APPLICANTS REQUESTING ADDITIONAL HOME FUNDS MUST ALSO SUBMIT ONE (1) COMPLETE COPY, IN ADDITION TO THE ORIGINAL, OF THE APPLICATION AND ALL ATTACHMENTS. ALL APPLICATIONS MUST BE SUBMITTED BY FRIDAY, JULY 31, 2009, AT 4:30 P.M. APPLYING FOR ADDITIONAL TAX CREDITS, TCAP OR EXCHANGE FUNDS Submit Complete Application to: Multi-Family Housing Department Arkansas Development Finance Authority P.O. Box 8023 Little Rock, Arkansas 72203 Physical delivery to: 423 Main Street, Suite 500 Little Rock, Arkansas 72201 2. Attachments: i. Letters of Commitment from all financial sources that clearly state that the person or institution is financially committed in the amount stated. These must be submitted regardless of the letters of commitment submitted with the ORIGINAL APPLICATION. ii. Written investor/syndicator and applicant statements as required by “2009 Selected Criteria and Guidance and Procedures for the Distribution of Additional Tax Credits; HOME Funds; TCAP Funding; and Exchange Funds”; iii. Attachment C – Pro Forma iv. Attachment E – Building and Unit Designation v. Conflict of Interest Acknowledgement; Contract and Grant Disclosure and Certification Form; vi. Architect/Engineer Certifications; Attachment G – “Multi-Family Housing Minimum Design Standards Checklist”; vii. Standard Form 424; viii. Copy of the Affirmative Marketing Plan ix. IRS Form W-9; x. HUD Certification for Contracts, Grants, Loans, and Cooperative Agreements; SF-LLL, Disclosure of Lobbying Activities (If applicable); xi. HOME Program Match Requirements xii. HOME Unit Breakdown i 3. If the applicant is not a state agency, a copy of this same information must be submitted to the appropriate area-wide Clearinghouse. The state address is: State Clearinghouse 1515 W. 7th Street 1515 Building, Room 417 Little Rock, AR 72201 4. Also submit the entire APPLICATION by Friday, July 31, 2009, at 4:30 p.m. electronically as a SAVED (not scanned) ADOBE® file via e-mail to: bbokony@adfa.state.ar.us 5. REQUIRED FORMAT: Place the original and, if applicable, copy of the application and exhibits in a sufficiently sized 3-ring binder. Do not otherwise bind, staple or use Acco fasteners. Arrange the application according to Tab Numbers and information requested. If you have extra exhibits that do not fall under a specific TAB listed in the checklist, attach additional TABs starting with number 16. 6. RED HELP SIGNS are inserted in this Application with Instructions Applicable to this Application. APPLICANTS ARE RESPONSIBLE FOR READING, KNOWING and FOLLOWING THE INSTRUCTIONS INSERTED WITH THE RED HELP SIGNS. RETAIN A COPY OF THE FULL APPLICATION AND ATTACHMENTS FOR YOUR FILES. 2009 SELECTION CRITERIA And GUIDANCE AND PROCEDURES For the Distribution of ADDITIONAL TAX CREDITS; HOME FUNDS; TCAP FUNDING; AND EXCHANGE FUNDS Pursuant to Section 42 of the Internal Revenue Code, 26 USC § 42, the Arkansas Development Finance Authority (the “Authority”) must annually adopt a Qualified Allocation Plan (“QAP” ) that establishes selection and program criteria for the allocation of federal low-income housing tax credits from the State’s annual ceiling. On July 17, 2008, and August 21, 2008, the Board of Directors for the Authority adopted its QAP for 2009. Due to the reduction or complete loss of federal low-income housing tax credit investor equity, President Obama signed into law the American Recovery and Reinvestment Act (“ARRA), Public Law 111-5 on February 17, 2009. ARRA established two subsidy provisions to assist those developments that have been or will be awarded tax credits in 2007, 2008 and 2009. The first is the Tax Credit Assistance Program ("TCAP") which provides $20,463,053 in federal funding to Arkansas from HUD for the express purpose of providing financing to those taxpayers "awarded" low-income housing tax credits under Section 42(h) of the Internal Revenue Code (IRC) in fiscal years 2007, 2008 and 2009. The second is a grant program whereby Arkansas can elect to receive a grant of funds in an amount up to $.85 per tax credit for tax credits consisting of all unused and returned credits held by the Authority plus 40% of our 2009 state ceiling (not including disaster credits). This is referred to as the "exchange program". In addition to the stimulus funding provided by the ARRA, the Board of Directors has implemented two additional initiatives to assist existing developments in need of additional financing: 1) Pursuant to 26 USC § 42(d)(5), the Board of Directors has designated certain existing developments as difficult to develop entitling them to a 30% basis boost; and 2) provide additional tax credits to those developments in need of additional financing. ii Distribution of the $20,463,053 in TCAP funding must be done on a competitive basis. The Board of Directors has determined to award TCAP funding in association with the other funding sources available as indicated by the financial needs of the applicant. The following “ARKANSAS’S THREE TIER SELECTION PROCESS” and 2009 Guidance and Procedures have been approved by the Board of Directors on May 15, 2009, and June 18, 2009, respectively, for the distribution of TCAP funds and Exchange Program funds. ARKANSAS’S THREE TIER SELECTION PROCESS 2006, 2007 and 2008 ALLOCATION RECIPIENTS: 1. TIER ONE – INITIALLY CONSIDER TO ALLOCATE UNUSED, RETURNED AND AS NEEDED 2009 TAX CREDITS a. Additional Tax Credits Only. Per the Board's directive of December, 2008, staff will allocate/reserve additional tax credits to those 2006, 2007 and 2008 owners that have not been issued IRS Forms 8609. b. Application will be by submission of a 2009 Special Application to include updated financial commitment letters and an updated Pro Forma, Attachment C. Applicants must meet the minimum debt coverage ratio of 1.10. c. Application must be submitted by Friday, July 31, 2009, at 4:30 p.m. d. Additional tax credits must be purchased at no less than $.50 per additional tax credit requested. Recipients of additional tax credits will not be eligible to return any tax credits allocated or reserved by ADFA for the purpose of receiving TCAP funds or an Exchange/Subaward. e. Pursuant to Section 42, eligibility for additional tax credits is determined as follows: i. If development buildings placed in service in 2009, or will place in service in 2010, and credit eligibility has increased due to 9% credit percentage requirement of Section 3002 of P.L. 110-289 and 30% basis boost per Board directive of January, 15, 2009 (available for new buildings only). ii. After building's 1st tax credit year and only if the LIHTC qualified basis has increased by virtue of increase in number of LIHTC units or LIHTC square footage. In this instance, the 2/3 rule of Section 42(f)(3) of the Internal Revenue Code. Will require Board approval to increase LIHTC units from original application. iii. The amount of additional tax credits plus any previous allocation cannot exceed the maximum amount allowed pursuant to Section IIIA. of the 2009 Qualified Allocation Plan. f. These developments will not be entitled to TCAP, an Exchange/Subaward, or additional HOME funds because they have not competed for these types of financing as required below. 2. TIER TWO – CONSIDERED AFTER DETERMINE AMOUNT OF CREDITS REMAINING AFTER TIER ONE AWARDS FOR PURPOSES OF AWARDING ADDITIONAL TAX CREDITS; TCAP EXCHANGE/SUBAWARDS AND/OR ADDITIONAL HOME FUNDS. a. Application will be by submission of a 2009 Special Application, to provide information required for the TCAP and Exchange/Subaward Programs, to include updated financial commitment letters, an updated Pro Forma, Attachment C, and, if applicable, updated Attachment G. Applicants must meet the minimum debt coverage ratio of 1.10. b. Applications for funding will only be considered if the applicant is eligible for such funding pursuant to the American Recovery and Reinvestment Act and Section 42 of the Internal Revenue Code and if submitted by Friday, July 31, 2009, at 4:30 p.m. c. To be eligible for TCAP funds, the applicant must retain no less than $1,000 in annual federal low-income housing tax credits, or, $10,000 in the aggregate. d. Applications requesting TCAP funds will be based upon priority and competitive scoring as follows: iii Certification to a development timeline that verifies the development will expend 100% of the TCAP funds awarded no later than November 15, 2010 and will place in service no later than December 31, 2011. Failure to make the certifications eliminate the applicant's eligibility for funding separate from that in the applicant's ORIGINAL APPLICATION. Failure to adhere to the timelines required will result in a recapture of tax credits, TCAP or Exchange/Subaward funds, as applicable. ii. The Final Score received with 2008 scores adjusted to match 2007 scoring criteria. (The Final Score for 2008 will be reduced by any bonus points received under Item #11 "Market Feasibility Study" as the bonus points were not available for 2007. With this reduction, the scoring criteria for 2007 and 2008 are identical); and iii. 5 priority points to those applicants requesting additional tax credits. Additional tax credits must be purchased at no less than $.50 per additional tax credit requested. Recipients of additional tax credits will not be eligible to return any tax credits allocated or reserved by ADFA for the purpose of receiving TCAP funds or an Exchange/Subaward. iv. In the event of a tie, the Board of Directors for the Authority will award priority based upon factors in the application such as: market need, number of affordable units; income/rent limitations; energy efficiency; and unit amenities. v. TCAP funds will be awarded based upon the highest score as determined under this subsection. vi. The maximum amount of the TCAP fund award will be $500,000. e. Applicants requesting the maximum amount ($500,000) of TCAP funding will be eligible for additional HOME funds not to exceed $900,000, including any previous allocation. Recipients may use the additional HOME funds to reduce permanent debt, deferred developer fee, or other funding source in the ORIGINAL APPLICATION. f. To be eligible for an Exchange/Subaward, the applicant must request, at a minimum, $100,000 in TCAP funding. Equity created by an Exchange/Subward can only be used to replace equity lost from the ORIGINAL APPLICATION. g. If requesting Exchange/Subaward, applicants must provide the following: i. Written statement from most recent investor/syndicator submitted to ADFA which indicates that the investor/syndicator has rescinded its previous equity commitment to the applicant. The written statement must reference the date and terms of the previous equity commitment rescinded and the amount rescinded. If the rescission is limited to a portion of the previous credit amount accepted and equity commitment, the investor/syndicator statement must specifically identify the amount of credits and amount of equity that remain accepted and committed; ii. Written statement from nationally recognized investor/syndicator indicating that the investor/syndicator has been contacted by the applicant and rejected an offer to purchase any/all of the tax credits offered. The rejection must specifically identify the amount of credits offered and rejected. If the rejection is limited to a portion of the tax credits offered, the investor/syndicator statement must specifically identify the number of credits accepted for purchase and amount of equity to be paid for such purchase; and iii. Sworn statement by the applicant that: A. In addition to the investor/syndicator identified in subsection 2g.ii above, the applicant has contacted two additional nationally recognized investors/syndicators and they have rejected the purchase of any tax credits allocated to the applicant; B. Each investor/syndicator contacted has made no offer/counter-offer to purchase credits allocated at any per credit price. h. Recipients must provide official evidence, e.g., building permit, construction permit, etc. that they can begin construction within 120 days of commitment of funding. Failure to produce this evidence will result in no eligibility to receive subsidy. i. iv i. Applicants must certify that the development's buildings will be placed service as required by Section 42 of the Internal Revenue Code. 3. Tier Three - 2009 APPLICANTS - CONSIDERED AFTER DETERMINE AMOUNT OF CREDITS REMAINING AFTER TIER TWO AWARDS FOR PURPOSES OF AWARDING ADDITIONAL TAX CREDITS; TCAP AND/OR EXCHANGE/SUBAWARDS a. Funding availability will include: i. Tax credits remaining after the 2007 and 2008 outstanding developments have been awarded additional tax credits and Exchange/Subaward; ii. TCAP funds remaining after award to 2007 and 2008 outstanding developments iii. Exchange funds available after award to 2007 and 2008 outstanding developments iv. HOME funds availability. b. 2009 applicants will be scored as required under the 2009 QAP. c. 2009 applicants will be awarded remaining tax credits based upon the highest score. Following a reservation of the tax credit award, if any TCAP, Exchange/Subaward, or HOME funds remain available, applicants will be given an opportunity to request such funding with the highest scoring development receiving priority. In the event of a tie, the Board of Directors for the Authority will award priority based upon factors in the application such as: market need, number of affordable units; income/rent limitations; energy efficiency; and unit amenities. d. To be eligible for TCAP funds, the applicant must retain no less than $1,000 in annual federal low-income housing tax credits, or, $10,000 in the aggregate. e. TCAP funds will be awarded based upon the following priorities: i. Certification to a development timeline that verifies the development will expend 100% of the TCAP funds awarded no later than November 15, 2010 and will place in service no later than December 31, 2011. Failure to make the certifications eliminate the applicant's eligibility for funding separate from that in the applicant's ORIGINAL APPLICATION. Failure to adhere to the timelines required will result in a recapture of tax credits, TCAP or Exchange/Subaward funds, as applicable; and ii. The highest score as determined under subsection c. above. f. Applicants requesting the maximum amount ($500,000) of TCAP funding will be eligible for additional HOME funds not to exceed $900,000, including any previous allocation. Recipients may use the additional HOME funds to reduce permanent debt, deferred developer fee, or other funding source in the ORIGINAL APPLICATION. g. To be eligible for an Exchange/Subaward, the applicant must have requested, at a minimum, $100,000 in TCAP funding. Equity created by an Exchange/Subaward can only be used to replace equity lost from the ORIGINAL APPLICATION. h. If requesting Exchange/Subaward, applicant must provide the following: i. Written statement from most recent investor/syndicator submitted to ADFA which indicates that the investor/syndicator has rescinded its previous equity commitment to the applicant. The written statement must reference the date and terms of the previous equity commitment rescinded and the amount rescinded. If the rescission is limited to a portion of the previous credit amount accepted and equity commitment, the investor/syndicator statement must specifically identify the amount of credits and amount of equity that remain accepted and committed; ii. Written statement from nationally recognized investor/syndicator indicating that the investor/syndicator has been contacted by the applicant and rejected an offer to purchase any/all of the tax credits offered. The rejection must specifically identify the amount of credits offered and rejected. If the rejection is limited to a portion of the tax credits offered, the investor/syndicator statement must specifically identify the number of credits accepted for purchase and amount of equity to be paid for such purchase; and v iii. Sworn statement by the applicant that: A. In addition to the investor/syndicator identified in subsection 2h.ii above, the applicant has contacted two additional nationally recognized investors/syndicators and they have rejected the purchase of any tax credits allocated to the applicant; B. Each investor/syndicator contacted has made no offer/counter-offer to purchase credits allocated at any per credit price. i. Recipients must provide official evidence, e.g., building permit, construction permit, etc. that they can begin construction within 120 days of commitment of funding. Failure to produce this evidence will result in no eligibility to receive subsidy. j. Applicants must certify that the development's buildings will be placed service as required by Section 42 of the Internal Revenue Code. Board Approval Any award made pursuant to Arkansas’s Three-Tier selection process is subject to the approval of the Board of Directors for the Arkansas Development Finance Authority. The Board of Directors has the authority to determine the amount of any additional tax credits, TCAP, Exchange/Subaward or additional HOME funds awards based upon the financial feasibility analysis of any applicant. 2009 Guidance and Procedures Tax Credit Assistance Program (“TCAP”) • • • • • • ADFA’s TCAP Application has been accepted by HUD. $20,463,053 available for 2007, 2008 and 2009 LIHTC “awardees.” “Awardee” defined to include those development owners publicly announced by Board of Directors as receiving a reservation of tax credits. ¾ Does not include those development owners who returned their tax credits prior to enactment of ARRA. Apply by application as provided by ADFA. Award of TCAP funding based on: a) Certification to timeline that verifies development will expend 100% of TCAP funds no later than November 15, 2010; b) Final Score received during original round with 2008 amended to match 2007 criteria with award to highest final score; c) 5 points for requesting “additional” tax credits i. Total amount of tax credits to be allocated cannot exceed $600,000 or $625,000, if applicable. ii. “Additional” tax credits do not include previously allocated credits or 2009 credits awarded or “swapped” in lieu of 2009 credits iii. Commitment will be for at least $.50 per credit Eligibility for TCAP: a) 2007, 2008, and 2008 awardees b) Must retain minimum amount of $1,000 in annual federal low-income housing tax credits, or $10,000 in the aggregate. i. Cannot be “Disaster” credits only. ii. Can be “swapped” 2009 credits. iii. Must place in service in accordance with year of allocation of “retained” tax credits. iv. If “retain” (swap for) 2009 tax credits, required to adhere to 2009 QAP including Minimum Design Standards – Universal Design requirements. c) Maximum amount of award is $500,000 ¾ Applicants requesting maximum amount of TCAP ($500,000) will be eligible to request additional HOME funds not to exceed $900,000. vi • d) Applicant must provide official evidence, e.g., building permit; construction permit, that can begin construction within 120 days of commitment of funding e) Applicant must certify that the development’s buildings will be placed in service in accordance with Section 42 of the IRC. Commitment and Expenditure deadlines: a. Within 90 days of selection, the Authority will complete environmental reviews on the selected developments; b. Within 30 days of environmental clearance, the Authority will enter into a written agreement with the recipient committing payment of the TCAP award based on the following: i. Recipient's agreement that TCAP funds will be awarded in the form of a loan, secured by mortgage, amortized over the term of the development's affordability period as selected in the recipient's tax credit application, to be payable monthly based on onehalf surplus cash (to be defined), with a balloon payment of the balance at the end of the affordability period; ii. Recipient's agreement that a covenant binding ownership and its successors will be recorded restricting the development property by those TCAP program requirements and crosscutting federal grant requirements required by Notice CPD-09-03. Those requirements will be separately identified in the covenant; iii. Recipient's agreement that TCAP funds may only be used for capital investment. Capital investment will be defined to mean costs included in "eligible basis" (not including 30% basis boost), except costs associated with the construction, acquisition or rehabilitation of a swimming pool(s), under Section 42 of the Internal Revenue Code; iv. Recipient’s agreement that costs incurred or expended prior to entry of the agreement are not eligible for TCAP funding. v. Recipient's agreement that it will not incur or expend costs for TCAP funding prior to the completion of a pre-construction conference between the recipient and the Authority and the issuance of a "Notice to Proceed" by the Authority; vi. Recipient's agreement that it will incur or expend "eligible" costs based upon the following timeline: A. Within 90 days of "Notice to Proceed" – 25% of TCAP award; B. Within 180 days of "Notice to Proceed" – 50% of TCAP award; C. Within 270 days of "Notice to Proceed" – 75% of TCAP award; D. No later than November 15, 2010 – 100% of TCAP award; vii. Recipient's agreement that failure to meet the deadline requirement of subsections b(vi)(A), b(vi)(B), or b(vi)(C), above, will require the recipient to set-aside an equivalent percentage, i.e., 25%, 50%, or 75%, of its developer's fee into escrow. Said amount will be payable to the developer in equal annual payments over 15 years following placement in service of the development; viii. Recipient's agreement that failure to meet the deadline requirement of subsection b(vi)(D), above, will result in the de-obligation, i.e. non-payment of any remaining TCAP funds, plus recapture of all TCAP funding previously awarded to the recipient; ix. Recipient's agreement that payment of TCAP funds will be based upon a schedule set forth in the agreement after on-site inspections by the Authority and receipt of, at a minimum, the following: A. Receipts or invoices of costs incurred or expended; B. Certification by certified public accountant that the costs incurred or expended, as presented, constitute "eligible basis" under Section 42 of the Internal Revenue Code; and C. Number of jobs created and retained during the period for which costs were incurred or expended; and x. Recipient's agreement that failure to place all buildings in the development in service in accordance with Section 42 will result in the recapture of all TCAP funding awarded to the recipient. vii • • xi. Recipient’s agreement that the provisions of 26 U.S.C. § 42(h)(6)(E)(ii -- 3-year tenant protections in event of foreclosure -- will apply to the development. Distribution of recaptured TCAP funds. a. Recaptured TCAP funds will be offered, in the order of the highest score, to any applicant that had previously applied for TCAP funds but did not receive the amount applied for due to a lack of TCAP funding. b. The maximum award of $500,000 will apply to the award of recaptured TCAP funds. c. The commitment and expenditure timelines of Section b(vi) above will apply. Dependent upon the date of recapture, the Authority will have the discretion to set timelines different from those set forth in Section b(vi) above. However, any timelines determined by the Authority will be set to ensure compliance with commitment and expenditure timelines imposed by the American Recovery and Reinvestment Act of 2009 and Section IV.C of Notice CPD-09-03. All commitment and expenditure timelines will be tracked and reported to HUD in IDIS Section 1602 Grants in Lieu of Tax Credits (“Exchange Program”) • • • • • • • • • • Available to developments placed in service after December 31, 2008. Acquisition costs for existing building(s) not eligible for Exchange Subaward if placed in service before January 1, 2009. ¾ Acquisition basis cannot include value of cash reserves Apply by application as provided by ADFA. Must have requested at least $100,000 in TCAP funding a) Which means must retain minimum amount of $1,000 in annual federal low-income housing tax credits, or $10,000 in the aggregate b) Can be “swapped” 2009 credits Cannot receive Exchange Subaward if allocated “additional tax credits.” Can only be used to replace equity lost from ORIGINAL APPLICATION Cannot exceed eligible basis costs not including 30% basis boost. ¾ TCAP plus Exchange funds cannot exceed eligible basis costs not including 30% basis boost. Must place in service in accordance with year of allocation of “retained” tax credits. Required to adhere to 2009 QAP including Minimum Design Standards – Universal Design requirements Applicant must provide the following: a) Written statement from most recent investor/syndicator submitted to ADFA which indicates that the investor/syndicator has rescinded its previous equity commitment to the applicant. b) Written statement from nationally recognized investor/syndicator indicating that the investor/syndicator has been contacted by the applicant and rejected an offer to purchase any/all of the tax credits offered. c) Sworn statement by applicant that: i. In addition to the investor/syndicator identified above, the applicant has contacted two additional nationally recognized investors/syndicators and they have rejected the purchase of any tax credits allocated to the applicant ii. Each investor/syndicator contacted has made no offer/counter-offer to purchase credits allocated at any per credit price. d) Applicant must provide official evidence, e.g., building permit; construction permit, that can begin construction within 120 days of commitment of funding e) Applicant must certify that the development’s buildings will be placed in service in accordance with Section 42 of the IRC. f) Subaward will be in the form of a grant payable after costs incurred or expended. viii • Must execute agreement with ADFA prior to disbursement that sets forth: a) All Section 1602 program requirements; b) Section 42 requirements; c) Provides for recapture of funds when: i. Failure to place in service in accordance with Section 42; or ii. Percentage of low-income units falls below percentage of Exchange Subaward; or iii. Number of units falls below minimum set-aside A. No partial recapture -- All or nothing on recapture amount B. One unit out of compliance does not trigger recapture iv. Recapture exposure amount decreases 6.67% for each full year of compliance d) Requires recipient to provide the following information prior to any payment of Exchange Subaward: i. Name of recipient entity ii. Name of development iii. Brief description of development iv. Location of project: city/county/State/zip code v. Number of construction jobs created vi. Number of construction jobs retained vii. Number of non-construction created viii. Number of non-construction jobs retained ix. Number of total housing units newly constructed x. Number of total housing units rehabilitate xi. Number of low-income housing units newly constructed xii. Number of low-income units rehabilitated e) Recipient's agreement that it will incur or expend "eligible" costs based upon the following timeline: i. Within 90 days of "Notice to Proceed" – 25% of Exchange award; ii. Within 180 days of "Notice to Proceed" – 50% of Exchange award; iii. Within 270 days of "Notice to Proceed" – 75% of Exchange award; iv. No later than November 15, 2010 – 100% of Exchange award; f) Recipient's agreement that failure to meet the deadline requirement of subsections e(i); e(ii); e(iii), above, will require the recipient to set-aside an equivalent percentage, i.e., 25%, 50%, or 75%, of its developer's fee into escrow. Said amount will be payable to the developer in equal annual payments over 15 years following placement in service of the development; g) Recipient's agreement that failure to meet the deadline requirement of subsection e(iv), above, will result in the de-obligation, i.e. non-payment of any remaining TCAP funds, plus recapture of all TCAP funding previously awarded to the recipient; Must incur or expend 100% of TCAP Funds and Exchange Subaward by November 15, 2010. 2009 Applications • • • • • Will be based upon 2009 application Made before September 30, 2009 2009 applicants will be awarded tax credits remaining after the 2007 and 2008 outstanding developments have been awarded additional tax credits and Exchange/Subaward ¾ Based upon the highest score Following a reservation of the tax credit award, if any TCAP, Exchange/Subaward, or HOME funds remain available, applicants will be given an opportunity to request such funding with the highest scoring development receiving priority Criteria for eligibility of TCAP and Exchange funds will be same as set forth above for the 2007 and 2008 awardees ix Amendments The above guidance is subject to change as necessary to administer the TCAP and Section 1602 Grants in Lieu of Tax Credit Programs in accordance with state and federal requirements. Board Approval Any award made pursuant to Arkansas’s Three-Tier selection process is subject to the approval of the Board of Directors for the Arkansas Development Finance Authority. The Board of Directors has the authority to determine the amount of any additional tax credits, TCAP, Exchange/Subaward or additional HOME funds requests based upon the financial feasibility analysis of any applicant. APPLICATION CHECKLIST 2009 Multi-Family Housing Special Application. Submit one (1) original and, if also a HOME applicant, one (1) copy of the following. Place a check by each item included in the application. Put N/A next to each item that does not apply to your application. DO NOT LEAVE ANY ITEM UNMARKED. Tab No. 1. ________ Complete Application (signed and dated), including application checklist and self-scoring sheet . 2. ________ Financial commitment letter from each funding source 3. ________ Site control information Deed Option/Purchase Contract 99-year leasehold Proof of Seller’s ownership of property, if not owned by applicant. Verification of Arm’s Length Transaction Included Rehabilitation Developments requesting acquisition credits must satisfy IRC Section 42(d)(2)(B) by including the following for each building: Purchase Requirement documentation; 10-year hold rule documentation (including both placed in service and most recent nonqualified substantial improvement of the building; Related party requirement documentation 4. __________ Written statement from most recent investor/syndicator submitted to ADFA which indicates that the investor/syndicator has rescinded its previous equity commitment to the applicant. The written statement must reference the date and terms of the previous equity commitment rescinded and the amount rescinded. If the rescission is limited to a portion of the previous credit amount accepted and equity commitment, the investor/syndicator statement must specifically identify the amount of credits and amount of equity that remain accepted and committed; and b. Written statement from nationally recognized investor/syndicator indicating that the investor/syndicator has been contacted by the applicant and rejected an offer to purchase any/all of the tax credits offered. The rejection must specifically identify the amount of credits offered and rejected. If the rejection is limited to a portion of the tax credits offered, the investor/syndicator statement must specifically identify the number of credits accepted for purchase and amount of equity to be paid for such purchase; and a. x c. Sworn statement by the applicant that: i. In additi on t o the i nvestor/syndicator identified i n Tab # 4b. above, the applicant has contacted two aGditional nationall\ recognized investors/syndicators and they have re jected the purchase of anytax credits allocated to the applicant; ii. Each investor/syndicatoUcontacted hasPade no offer/counWer-offer to purchase credits allocated at any per credit price. 5. __________ Utility Allowance Calculation 6. _________ 7. _________ 8. _________ Pro Forma (Attachment C) Conflict of Interest Acknowledgement (Attachment F-1) Signed and ComSleted Contract and Grant DiVclosure and Certification Form (Attachment F-2) Plans & Specifications Building and Unit Designation (Attachment E) Architect/Engineer certification that Gevelopment will comSly with ADFA’s “Multi-Family Housing Minimum Design Standards” Architect/Engineer cerWification of comSliance with applicable locaO, state and national building codes, including federal and state accessibility laws. Architect/Engineer ha s com pleted "M ulti-Family Housi ng Minim um Design Standards Checklist" (Attachment G) Additional Requirements for Rehabilitation Developments (if applicable) ___ Architect/Engineer certification of unavoidable nonconformance Architect/Engineer certification of no alternative available Applicant’s statement of implementation of alternative 9. _________ Standard Form 424 (Attachment H) 10. _________ Copy of the Affirmative Marketing Plan (Attachment I) 11. _________ Request for Taxpayer Identification Number and Certification (Form W-9) (Attachment K) 12. _________ HUD Certification for Contracts, Grants, Loans, and Cooperative Agreements (Attachment L) If applicable, SF-LLL – Disclosure of Lobbying Activities 13. _________ HOME Program Match Requirements (Attachment M) 14. _________ HOME Unit Breakdown (Attachment P) 15. _________ Copy of general contracts, estimates or sworn statements supporting proposed budget Start with TAB #16 for attachments not specified above. 16. - ________ xi ADFA 2009 SPECIAL MULTI-FAMILY HOUSING APPLICATION LIHTC FINAL Scores Previously Received by TIER TWO APPLICANTS ONLY ______________________________________________________________ (Name of Development) QAP POINTS CRITERIA POINTS #1. Location/USDA/HUD (Maximum 15 pts.) 0 #2. Development of Special Needs (Maximum 15 pts.) 0 #3. Involves rehabilitation of existing structures (10 pts.) 0 #4. Involves preservation or rehabilitation of existing affordable housing program or structures listed on National Register of (Maximum 10 pts.) Historic Places 0 #5. Lowering of developer and consultant fees to 10% or less (5 pts.) 0 #6. A minimum of 20% of the total residential units in the development are market rate units (5 pts.) 0 #7. Development provides additional amenities (Maximum 10 pts.) 0 #8. Development provides advanced energy efficient features (Maximum 15 pts.) 0 #9. Participation of tax-exempt organization (5 pts.) 0 #10. Site Visit (Maximum 10 pts.) 0 #11. Market Need (Maximum 15 pts.) 0 (Maximum 10 pts.) 0 #12. Applicant requests HOME Funds and elects to extend affordability period: QAP LEGISLATED PRIORITIES #1. Serves the lowest income group (3 pts.) 0 #2. Extends the duration of Low-Income use (4 pts.) 0 #3. QCT/Existing housing and Community Revitalization Plan (3 pts.) 0 TOTAL POINTS (Maximum 130 pts.) xii 0 ____ 2009 SPECIAL MULTI-FAMILY HOUSING APPLICATION For Additional Tax Credits, HOME Funds, TCAP and Exchange Program Funds ARKANSAS DEVELOPMENT FINANCE AUTHORITY 423 Main Street, Suite 500 Little Rock, Arkansas 72201 Phone: (501) 682-5900 Fax: (501) 682-5859 Application Date: __________________ _________ Year of Original Allocation Received by:_____________________ Date Stamp: _________ Year Placed in Service Applicant is applying for: (check only one) _____Tier One – Additional Tax Credits Only a. b. Amount of annual federal tax credits originally allocated: Applicant is requesting that original tax credit allocation be “swapped” for 2009 federal tax credits Amount of additional annual federal tax credits requested: → Total Amount of Annual Tax Credits Requested: ___________ ___________ $0 ___________ **************************OR********************* _____Tier Two – Additional Tax Credits; HOME Funds; TCAP and/or Section 1602 Exchange Programs’ Funds a. i. Amount of annual federal tax credits originally allocated: ___________ Applicant is requesting that original tax credit allocation be “swapped” for 2009 federal tax credits ii. Amount of additional annual federal tax credits requested: ___________ $0 → Total Amount of Annual Tax Credits Requested: ___________ b. i. Amount of original HOME Funds requested: ii. Amount of additional HOME funds requested: → Total Amount of HOME Funds Requested: ___________ ___________ $0 ___________ c. Amount of Annual Federal Tax Credits Returned: ___________ d. Amount of Annual Federal Tax Credits Retained: Applicant is requesting that “retained” federal tax credits be “swapped” for 2009 federal tax credits ___________ e. Amount of TCAP funds requested: ___________ f. Amount of Sec. 1602 Exchange Program Funds Requested: ___________ 1 I. DEVELOPMENT NAME & ADDRESS (List name under which development will do business. i.e. XYZ Apartments) Name of Development:_____________________________________________________________________ Address:___________________________________________ County:____________________________ City:______________________________________________ State:________ Zip Code:___________ Census Tract No.:_________________ Is this a Qualified Census Tract: Yes_______ No __________ Is the Development Located in: Metropolitan Statistical Area: Yes_______ No_________ Difficult to Develop Area: Yes_______ No_________ (As defined by the U.S. Department of Housing and Urban Development) U.S. Congressional District: _______ State Senate District: _______ State House District: _______ II. APPLICANT INFORMATION NAME UNDER WHICH APPLICANT DOES BUSINESS. (IF APPLICANT IS THE PARTNERSHIP/OWNER, ALSO COMPLETE PARTNERSHIP INFORMATION IN SECTION “III. PARTNERSHIP INFORMATION” BELOW.) ____ For Profit ____ Non-Profit Is this a new USDA – RD Section 515 owner? ______ Yes ______ No Name:____________________________________________________________________________________ *Contact Person:___________________________________________________________________________ Address:________________________________________ State:_____________ Zip Code:_______________ City:________________________________ Email Address:______________________________ Phone Number:__________________________ Fax Number:________________________________ *Contact person for all ADFA correspondence and contact regarding this development. Is the Applicant also the Developer? Yes_________ If not, please complete the following information: No________ Developer (If different than the Applicant): Development Company:_____________________________________________________________________ *Contact Person:___________________________________________________________________________ Address:_________________________________________________ City:________________________ State:__________ Zip Code:_______________ Email Address:_____________________________________ Phone Number:__________________________ Fax Number:_______________________________ *Contact person for all ADFA correspondence and contact regarding this development. 2 III. PARTNERSHIP INFORMATION: Partnership or its General Partner(s). ______ For Profit (Please note: ADFA reserves tax credits to the Reservations are non-transferable. Any changes in General Partner Status requires a new application) _______ Non-Profit LIMITED PARTNERSHIP: __________________________________________________________ Federal Tax Identification Number:____________________________________________________ NAME OF GENERAL PARTNER(S) ADDRESS/ PHONE NO. TOTAL NAME OF LIMITED PARTNER(S) ADDRESS/PHONE NO. TOTAL % OF OWNERSHIP 0.00 % % OF OWNERSHIP 0.00 % IV. SPECIAL HOUSING NEEDS SET-ASIDES (Please mark all that are applicable as determined in ORIGINAL APPLICATION.) Is a qualified non-profit organization, as defined in IRC § 501(c)(3) or § 501(c)(4), materially participating in the development and operation of the development throughout the compliance period ? ___________ Yes __________ No Will the development be located within one of the following twelve counties: 1) Arkansas; 2) Benton; 3) Cleburne; 4) Conway; 5) Crittenden; 6) Grant; 7) Lonoke, 8) Mississippi; 9) Phillips; 10) Pulaski; 11) Saline; or 12) Van Buren; Presidentially declared disaster areas as set forth in FEMA Declaration 1785-DR. ___________ Yes __________ No 3 V. DEVELOPMENT TYPE _____ New Construction _____ Acquisition/Rehabilitation _____ Date of Construction Buildings constructed prior to January 1, 1978 are subject to The Lead-Based Paint Poisoning Prevention Act and the Residential Lead-Based Paint Hazard Reduction Act of 1972 and 24 C.F.R. Part 35. VI. DEVELOPMENT INFORMATION 0.00% TOTAL No. of Units:_______ No. of LIHTC Units:________ Percentage of LIHTC Units:___________ 0 Number of units designated for Manager(s)/Employee(s) per IRS REVENUE RULE 92-61: _________ --Included in No. of LIHTC Units: Yes_________ No_________ --Included in No. of Market Rate Units: Yes_________ No________ (If yes, include in TOTAL and LIHTC units numbered above. If no, do not include above.) (If yes, include only in TOTAL units numbered above. If no, do not include above.) Type of Construction: _______Row/Townhouse _______Detached Single Family _______Garden Apartments Elevator Slab on Grade Full Basement Crawl Space Yes_________ Yes_________ Yes_________ Yes_________ No_________ No_________ No_________ No_________ Total No. of Buildings:___________ Total No. of Stories:________________ Total No. of Parking Spaces:________ Total No. of Handicap Parking Spaces:_____________ Total Gross Floor Area for all Buildings:___________________________________ (Sq. Feet) Total Residential Floor Area:_____________ Total LIHTC Residential Floor Area: _____________ (Sq. Feet) (Sq. Feet) Recreation Facilities/Common Space (list): _________________________________________________ Commercial Facilities (list):______________________________________________________________ Type of Units: _______Multi-Family Housing 55 _______Senior Housing _______Assisted Living 62 Other ________Special Needs/Supportive Services ________Single Room Occupancy ________Other: ____________________________ Targeting of Units: (If proposed development is elderly it must be housing for older persons as defined at 42 USC § 3607(b)(2) and Ark. Code Ann. § 16-123-307(d)(1).) Senior - No. of Units: ________ Handicapped - No. of Units: ________ Family - No. of Units (3 & 4 bedrooms): ________ Other:_________________ No of Units: ________ 4 UNIT SIZE BREAKDOWN (Include Manager/Employee Unit(s) within applicable Bedroom Size) NO. OF UNITS NET Square Footage Average Square of smallest of Footage of same same bedroom bedroom size size units units AVERAGE COST PER SQ. FT. $________________ Efficiency ____Bedroom(s) AVERAGE COST PER UNIT ____Bedroom(s) $_______________ ____Bedroom(s) ____Bedroom(s) PER UNIT COST CAP AVERAGE TOTAL UNITS 0 0 (Including Manager/Employee Unit(s)) $_______________ VII. SITE INFORMATION (Site Control Documentation must be submitted at TAB #3) Is site currently under control for the development? Yes_______ If yes, control is in the form of: ______Deed ______Purchase Contract ______Option ______Other: Expiration Date of Contract or Option: _______________ (Month/Year) Has an appraisal been completed on the property? Yes_______ Appraised Value of the Land and Improvements: $ Total Cost of Land: $ _____________ No________ No________ Exact Area of Site: ___________ (acres) Name of Seller: ________________________________________________________________ Address: _____________________________________________________________________ Phone: City:________________________ State & Zip: Is site properly zoned for your development? Yes_______ (Proper zoning documentation must be submitted at TAB #7.) No________ Are all utilities presently available to the site? Yes_______ No________ If no, which utilities need to be brought to the site? ______Electric ______Water ______Phone ______Sewer ______Gas ______Other:_____________________ VIII. EXISTING SUBSIDIES WITH ACQUISITION DEVELOPMENTS _______ _______ _______ _______ _______ Section 221(d)(3) BMIR Section 521 Rental Assistance Section 236 - HUD Section 8 Project Based Rental Assistance Section 515 - USDA Is HUD Approval for Transfer of Physical Asset Required? Yes_______ No________ 5 IX. MONTHLY UTILITY ALLOWANCE CALCULATIONS UTILITIES Type of Utility (Gas, Electric) Utilities Paid By (Tenant or Owner) Utility Allowance/Month Eff 1BR 2BR 3BR 4BR 5BR 0 0 0 0 0 0 Cooking Heating Hot Water Electric Lighting Air Conditioning Water Sewer Trash Other Total TENANT paid utility allowance Source of Utility Allowance Calculation (Documentation must be included at TAB #5) __ Public Housing Authority (PHA) __ Housing & Urban Development (HUD) __ Utility Company __ Rural Development (USDA RD) X. DEVELOPMENT TAX CREDIT RENTS: List the maximum applicable affordable housing tax credit rents for the development location: 0-BDR. 1-BDR. 2-BDR. 3-BDR. 4-BDR 30% of Area Median Income 50% of Area Median Income 60% of Area Median Income HOME APPLICANTS ONLY COMPLETE THE FOLLOWING: Low-Income Affordability and Rent Control Period (check one) _____ _____ _____ _____ _____ _____ 5 Years HOME Assistance/Unit $40,000/unit 20 Years New Construction __ Years FHA Insured __ Years (Other) 6 XI. DEVELOPMENT INCOME Total Number of Tax Credit Units: ____________ Tax Credit Units Not Supported by HOME Funds (DO NOT INCLUDE HOME ASSISTED UNITS – USE PAGE 11 FOR HOME ASSISTED UNITS) # of Bedrooms # of Units % Area Median Income (30/50/60) Proposed Monthly Net Rent Per Unit Monthly Utility Allowance Monthly Gross Rent Per Unit Total Monthly Income By Unit Type $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Monthly Rental Income $0 Total Annual Rental Income $0 Units Receiving Project Based Rental Assistance: Separately indicate those units receiving project based rental assistance which increases rents beyond LIHTC limits. Total Number of Market Rate Units: _____________ Market Rate Units Only # of Bedrooms # of Units Proposed Monthly Rent Total Monthly Rent By Unit Type $0 $0 $0 $0 $0 $0 $0 Total Monthly Rental Income $0 Total Annual Rental Income $0 Click this button to create addtional copies pages 7 and 8. Complete, save as a separate file, and print the additional copies. 7 HOME Assisted Units (Fill out Low HOME Rents and High HOME Rents Sections) Low HOME Rents: Low HOME Rents - at least 20% of the rental units assisted with HOME funds must have rents no greater than the established Low HOME Rents. These are very low-income families. Low HOME Rents are defined as rents that are not greater than 30% of the adjusted gross income of a family whose income is 50% of the median income for the area (AMI), adjusted for unit size. The Proposed Rents plus the HUD Utility Allowance for the unit cannot be greater than these rent limits for each bedroom size. HUD maximum income limits can be found at ADFA's website: http://www.arkansas.gov/adfa/HOME%2008/2008%20HOME%20Program%20Income%20and%20Rent%20Limits.pdf. HUD maximum LOW HOME and HIGH HOME rents can be found at ADFA's website: http://www.arkansas.gov/adfa/HOME%2008/2008%20HOME%20Rent%20Limits.pdf # of Bedrooms # of Units % Area Median Income (30/50) Proposed Monthly Net Rent Per Unit Utility Allowance Proposed Monthly Gross Rent Per Unit (cannot exceed HUD Maximum LOW HOME rent) Maximum LOW HOME Rent Total Monthly Income By Unit Type $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Units Receiving Project Based Rental Assistance: Separately indicate those units receiving project based rental assistance which increases rents beyond HOME/LIHTC limits. Total Monthly Rental Income $0 Total Annual Rental Income $0 High HOME Rents: High HOME Rents - up to 80% of HOME-assisted rental units may have High HOME Rents. Higher HOME rents are defined as units with rents the lesser of (1) the existing Section 8 Fair Market Rents (FMR) or (2) 30% of the annual gross income of a family whose income equals 65% of the median income for the area, adjusted for unit size. Refer to the Rent Limits for your area provided in the website listed above and compare the FMR number and the 65% figure. Write the lower of these two numbers in the last column above for each bedroom size. Your Proposed Rent plus the Utility Allowance for the unit cannot be greater than this rent limit for each bedroom size. # of Bedrooms # of units Proposed Monthly Net Rent Per Unit Utility Allowance Proposed Monthly Gross Rent Per Unit (cannot exceed HUD Maximum HIGH rent) Maximum HIGH HOME Rent Total Monthly Income By Unit Type $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Monthly Rental Income $0 Total Annual Rental Income $0 8 ALL APPLICANTS COMPLETE THE FOLLOWING SECTION: Total Annual Gross Rent Income: Tax Credit Rent Annual Gross Income $0 Fair Market Rent Annual Gross Income Low HOME Rent Annual Gross Income High HOME Rent Annual Gross Income Additional Rent Annual Gross Income (From Additional Pages 7 - 8, if any) $0 $0 $0 TOTAL RENTAL INCOME $0 XII. ANNUAL EXPENSE INFORMATION Annual Expenses (Complete this section listing the annual operating expenses for all the units). Annual Development Income 1. Annual Gross Rental Income $0 2. Vacancy Factor of 3. Annual Effective Gross Residential Income (1 - 2) 4. Annual Laundry Income $0 $0 5. Annual Vending Income $0 6. Annual Late Fees $0 7. Annual Interest Income $0 8. Annual Non-refundable Pet Fee $0 9. Interest Income-reserve $0 10. Lease Cancellation Fee $0 11. Deposit Forfeitures $0 12. Application Fee Income $0 13. Annual Other Income $0 14. Annual Effective Other Income (4 + 5 + 6 + 7 + 8 + 9 + 10 + 11+12+13) $0 Total Annual Effective Income (3+14) $0 Operating Expense Budget - Yearly Estimate 1. General and Administrative Advertising & Marketing Management Fee 0.00% $0 __________ $0 __________ Percent of Effective Gross Residential Income ____ Administrative Legal Accounting Office Supplies Credit Investigations Leasing Fees Other TOTAL ADMINISTRATIVE COSTS $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ 9 2. Payroll Related Administrative Payroll Maintenance Payroll Workman s Compensation Health Insurance Payroll Taxes Other Fringe benefits TOTAL PAYROLL __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ 3. Maintenance Decorating Pool Exterminating Repairs Security Ground Expenses Building Supplies Other TOTAL MAINTENANCE COSTS $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ 4. Operating Fuel (heating and hot water) Lighting & Misc. Power Water/Sewer Trash Removal Janitorial Telephone Other TOTAL OPERATING COSTS $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ $0 __________ 5. Taxes and Insurance Real Estate Taxes Insurance Other Taxes, Licenses, Fees TOTAL TAXES AND INSURANCE __________ $0 __________ $0 __________ $0 __________ 6. TOTAL Annual Expenses: $0 $0 $0 $0 Total __________ Per Unit ________ $0 Note: Replacement Reserves cannot be less than: 7. Replacement Reserves _____________* 8. Net Operating Income (NOI) _____________ $0 $0 $0 9. 1st Mortgage Debt Service: (Source)_____________ _____________ $0 10. 2nd Mortgage Debt Service: (HOME Funds) _____________ 11. Other Debt Service: (Source)__________________ _____________ 12. Other Debt Service: (Source)__________________ _____________ 13. Total Debt Service _____________ If HOME Loan annual payment deferred until 4th year, enter $0.00. Otherwise, enter the HOME Loan annual payment. $0 $0 $0 10 $0 14. Cash Flow $_____________ 15. Total HOME Loan Amount $_____________ 16. Total TCAP Loan Amount $_____________ 17. Owner Equity $0 $_____________ Ratios • Debt Coverage Ratio (DCR) (cannot be less than 1.10) •• Fourth year DCR as indicated on Pro Forma when HOME Loan Deferred •••HOME Loan to Value Ratio $0 $0 _______________ _______________ _______________% Formulas • Net Operating Income (Item 8 above) divided by Total Debt Service (Item 13 above) = Debt Coverage Ratio (DCR) •• When HOME Loan Deferred to Fourth year, DCR cannot be less than 1.10 ••• HOME Loan percent of development appraised value = HOME Loan to Value Ratio Operating Reserves……………… $__________________________________* Note: Operating Reserves cannot be less than: (No less than 4 months of the sum of: $0 (a) projected annual operating expenses, (b) annual debt service payments and (c) annual replacement reserve deposits) * ________________________________________________________ ________________________________________________________ ________________________________________________________ (Name and Address of Financial Institution Where Held) Annual Expense/Income Information Verification _____________________________________________________________________ CERTIFIED CORRECT (Applicant or Authorized Representative) DATE ______________________________________________________________________________________________________ ADFA APPROVAL (ADFA Approval Official) DATE ________ Check if all commitment letters are enclosed from lending/financing sources All Applicants must complete the Pro Forma, Attachment C, and attach at TAB #5. 11 XIII. SOURCE OF FUNDS – FINANCING: Financing Information: Using the following table, reproduce the Permanent Financing Information indicated at Section XXIII, pg. 16, of the ORIGINAL APPLICATION: NAME OF LENDER OR SOURCE, CONTACT PERSON AND TELEPHONE NUMBER AMOUNT OF FUNDS INTEREST RATE First Mortgage % HOME (Second Mortgage) % Third Mortgage % AMORT. PERIOD (MONTHS) LOAN TERM (MONTHS) ANNUAL DEBT SERVICE Proceeds from Federal Low-Income Housing Tax Credits Proceeds from State Low-Income Housing Tax Credits Proceeds from Historic Tax Credits Deferred Developer Fee % Other % Totals $0 $0 Following the “ 2009 Selection Criteria and Guidance and Procedures for the Distribution of Additional Tax Credits; HOME Funds; TCAP Funding and Exchange Funds, please complete the following table: NAME OF LENDER OR SOURCE, CONTACT PERSON AND TELEPHONE NUMBER AMOUNT OF FUNDS INTEREST RATE AMORT. PERIOD (MONTHS) LOAN TERM (MONTHS) ANNUAL DEBT SERVICE First Mortgage % % HOME (including additional request) Third Mortgage % TCAP Proceeds from Federal Low-Income Housing Tax Credits TCAP and Exchange Funds Total: $0 Proceeds from State Low-Income Housing Tax Credits Proceeds from Historic Tax Credits 1602 Exchange Subaward % Deferred Developer Fee Other (Describe) % Totals $0 $0 12 XXIV. DEVELOPMENT COSTS Eligible Basis by Building Type COSTS*** SUPPORTED BY HOME FUNDS ITEMIZED COST OTHER COSTS To Purchase Land & Buildings Purchase of Land Purchase of Existing Structures Other: Other: Site Work Site Work On-Site Infrastructure Improvement Off-Site Infrastructure Improvement Demolition Other: Rehabilitation & New Construction New Building Rehabilitation Accessory Building General Requirements 0.00% ≤ 7% Contractor Overhead 0.00% ≤ 4% 0.00% ≤ 10% Contractor Profit Other: Other: Contingency Construction Contingency Soft Costs Contingency Other: Architectural, Engineering & Legal Fees Architect Fee – Design Architect Fee – Supervision Engineering Fees Attorney Fees Other Fees: Other Fees: Other Fees: Other Fees: Other Fees: Interim Costs Construction Insurance Construction Interest Construction Loan Origin. Fee Construction Loan Credit Enhancement Real Estate Taxes Other: Financing Fees and Expenses Bond Premium Credit Report Permanent Loan Origin. Fee Permanent Loan Credit Enhancement Cost of Issue/Underwriters Discount Title and Recording Bond Counsel's Fee Other: Other: Other: Subtotal EXISTING BUILDINGS ELIGIBLE BASIS 4% LIHTC TOTAL ACTUAL COST NEW BUILDINGS ELIGIBLE BASIS 4% or 9% LIHTC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 *** Break out HOME Fund assistance from Total Actual Cost. 1 Eligible Basis by Building Type COSTS*** SUPPORTED BY HOME FUNDS ITEMIZED COST Soft Costs Property Appraisal Market Study Environmental Report Tax Credit Fees Compliance/Monitoring Fee Lease-Up Expense & Marketing Other: Other: Syndication Costs Organizational (Partnership) Bridge Loan Fees & Expenses Tax Opinion Other: Other: Developer and Consultant Fees Developer's Fee: Developer’s Overhead: Consultant’s Fee: Other: Other: Development Reserves Replacement Reserve Operating/Lease-up Reserve Other Reserve: Other Reserve: OTHER COSTS EXISTING BUILDINGS ELIGIBLE BASIS 4% LIHTC TOTAL ACTUAL COST NEW BUILDINGS ELIGIBLE BASIS 4% or 9% LIHTC 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% Total Fees = New Construction Cannot Exceed: $0 $0 Acquisition/Rehabilitation Cannot Exceed: $0 0 0 0 0 0 0 0 0 0 Subtotal Subtotal from previous page 0 0 0 Total $0 0 0 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Less portion of federal grant used to finance qualifying development cost. List grants______________ Less amount of non-qualified nonrecourse financing Less amount of non-qualified units of higher quality Less non-qualifying excess portion of higher quality units Less Historic Tax Credit (Residential Portion Only) Net Eligible Basis 30% Adjustment for high cost area (QCTs and DDAs) 0.00 $0 Total Eligible Basis $0 $0 Multiplied by the Applicable Fraction 0.0000 0.0000 Total Qualified Basis $0 $0 Multiplied by Applicable Percentage ANNUAL FEDERAL TAX CREDITS REQUESTED TOTAL ANNUAL FEDERAL TAX CREDITS REQUESTED STATE TAX CREDITS REQUESTED (20% OF FEDERAL) 0.00% 0.00% $0 $0 $0 $600,000 Select 0.20 from the pull down menu if requesting State Tax Credits. 0.00 This amount is the lesser of the total amount of federal credits requested or applicable development credit cap. $0 $0 14 HOME APPLICANTS: Each applicant for HOME funds will be required to meet a 12.5% non-federal matching requirement. Applicants must structure their proposals based on the 12.5% matching requirement and submit Attachment M, which is an itemization of all proposed match requirements and include in TAB #12. Submit the following to support this proposed budget: copies of general contracts, estimates or sworn statements at TAB #14. *When used for new construction, HOME funds may be used to fund an initial operating deficit reserve, which is a reserve to meet any shortfall in development income during the period of development rent-up (not to exceed 18 months) and which may only be used to pay operating expenses, reserve for replacement payments and debt service. Any HOME funds placed in an operating deficit reserve that remain unexpended when the reserve terminates must be returned to the Authority. XV. SYNDICATION INFORMATION (Provide information below concerning syndication and estimated proceeds from sale of Housing Credits and State Housing Credits if utilizing as source of funds) Annual allocation amounts for: Federal Low-Income Housing Credits State Low-Income Housing Credits Historic Rehabilitation Tax Credits $____________________ $____________________ $ ____________________ Total Tax Credit Equity expected to be raised: Type of Offering: _____Public _____Private $ Type of Investor: _____Individuals _____Corporations Name of Tax Credit Fund:________________________________________________________ Equity/Syndicator Entity: Name: Contact: Address: City, State, Zip Code: Phone/Fax #: / Describe when equity will be paid into the development (i.e. at time of what events) and how much will be paid in at each event: AMOUNT OF TAX CREDIT EQUITY PAID TO THE DEVELOPMENT EVENT $ $ $ $ 15 HOME APPLICANTS COMPLETE THE FOLLOWING Federal Labor Standards (Davis-Bacon): If the development to be constructed/rehabilitated contains 12 or more HOME assisted units, or if any TCAP funds are awarded the federal labor standards provisions regarding the payment of prevailing wage rates as determined by the Department of Labor apply. Contractor Licensing: Must have contractor licensed by State for developments over twenty thousand dollars ($20,000). (Copy of License must be included at TAB #34) Does the general contractor have experience? Yes _______ No _______ Special Needs Populations: Identify any development features designed to serve populations with special housi